SERVICE PROVIDERS IN FACILITIES MANAGEMENT: IN-HOUSE VS OUTSOURCING

Abstract

Cleaning is surrounded by negative bearings; it suffers from high staff turnover, poor wages and low self-esteem. Facilities Management (FM) presents a way out to make a job attractive and more rewarding. The possibility of career progression and multi-tasking is one obvious advantage. The method of having different contractors on-site and staff performing only one task is becoming less workable. The ideal scenario would be for an on-site staff to carry out a whole spectrum of tasks. Organizations, both large and small, are increasingly outsourcing their business activities to specialised service providers (SSPs) for a variety of reasons such as reduction of operating expenses, lack of internal expertise, focus on core competencies and risk management. However, they must consider a number of factors in determining the optimal staffing, outsourcing and integration balance. This study examines the reasons that influences cleaning companies' decision in providing integrated janitorial services. The results indicate that factors like provision of quality services and effective resource management are significant in influencing cleaning companies to consider outsourcing business activities and provision of integrated janitorial services. Having a smooth business operation attained the utmost influence on cleaning companies' decision on in-housing business activities.